Understanding how Bitcoin works – a quick overview
In order to understand how to cash out Bitcoin in Canada, it’s essential that you’re well-aware of how Bitcoin works. The digital currency depends on blockchain technology, which is responsible for bringing it into circulation, controlling its supply, and securing it.
In order to bring Bitcoin into circulation, you have to undergo a process known as Bitcoin mining. The process involves solving mathematical equations and requires a good amount of computing power. The miner is then rewarded with a Bitcoin, and the coin is added to the blockchain.
Similarly, in order to control Bitcoins supply, there’s an event known as Bitcoin halving, which cuts down the crypto’s supply by 50%. Bitcoin halving takes place roughly every four years and plays a significant role in adding to Bitcoins value by decreasing its supply.
Nowadays, people prefer buying Bitcoin through crypto exchange platforms or crypto brokers due to the ease and convenience they offer. On the other hand, the process of mining Bitcoin is expensive and time-consuming, which is why it is usually done on a mass level for business purposes.
Is it legal to buy and sell Bitcoin in Canada?
Is Bitcoin legal in Canada? Yes, buying and selling Bitcoin is completely legal in Canada. The government does not consider Bitcoin to be legal tender, but the crypto is treated as a commodity instead. Likewise, just as any other commodity is subject to taxation, so are cryptocurrencies.
If you buy or sell Bitcoin in Canada in order to make a profit, you will need to add it to your income for the tax sheet. However, the tax does not apply if you purchase or sell Bitcoin for personal use. You can read more about crypto taxation on our website or visit the Canadian Government official website, where they have a section dedicated to crypto taxation laws in Canada.
The bottom line is that Canadian’s enjoy crypto trading in a pro-crypto environment, with very few restrictions in place. However, the recommended way to sell or buy Bitcoin in the country is through a licensed and regulated crypto exchange or crypto broker.
Compare the best Bitcoin trading platforms in Canada
Guide on selling Bitcoin in Canada – How to sell Bitcoin in Canada 101
When it comes to the million dollar question; “how to sell cryptocurrency in Canada?”, there are a number of options you can turn to. Though firstly, you should be clear about the following questions:
- Are you focused on converting your Bitcoin to CAD or a different currency?
- How urgently do you need to sell your Bitcoin?
- Are you looking for cash payment or bank transfer?
- Are you okay with a slightly low conversion rate, or would you rather bargain?
Now, based on how you answer the above questions, you can choose from the below options:
Bitcoin ATMs are one of the simplest and easiest ways to cash out your Bitcoin. Not only are they easy, but the process is painless, usually taking no more than 10-15 minutes. However, with that being said, if the ATM is busy you could expect it to take up to a few hours. If you’re interested in selling your Bitcoin through an ATM, you should keep in mind that each ATM has its own transaction limit. A single transaction limit could range from 4000 USD up to 10’000 USD.
Crypto exchange platforms
Selling Bitcoin through a Crypto Exchange is super easy and convenient, especially if you’re doing it for investment purposes. You basically exchange your crypto for another currency or legal tender through the platform and then withdraw your currency through various methods. The process isn’t lengthy if the platform you’re trading with is user-friendly and offers fast withdrawal options.You can ask any platform’s customer support team regarding your options on how to withdraw Bitcoin in Canada.
A cryptocurrency broker is the middleman/woman that connects a crypto seller with a crypto buyer. The primary benefit of selling your crypto through a broker is that the broker will do all the work for you so you can lay back and relax. However, convenience comes at a cost, so crypto brokers are usually more costly than crypto exchange platforms.
LocalBitcoins is a peer-to-peer marketplace that connects Bitcoin buyers and sellers who use the same currency so that they can locally buy and sell their bitcoins amongst each other. This way, the seller or buyers don’t have to pay hefty currency exchange rates. This is one of the easiest and more cost effective ways to convert Bitcoin to cash Canada.
How to choose a Crypto exchange platform – Where to sell Bitcoin in Canada
With the rapid rise in emerging crypto exchange platforms across the globe, it can be challenging to decide which crypto exchange platform is best for you. However, here are a few tips that can help you decide which exchange platform should be your go-to option:
Make sure the crypto exchange is secure
The first sign that shows whether a crypto exchange platform is secure or not is the license and regulation it’s under. Any secure crypto trading platform will be regulated and licensed under one or more tier-1 financial regulators. Being regulated under a tier-1 financial authority simply means the broker adheres to strict rules and guidelines to ensure its traders’ funds are secure and they’re trading in a safe environment.
Check online reviews
When it comes to crypto exchange platforms, nothing speaks louder than customer reviews. Before signing up with any online broker, make sure to check online reviews to see the pros and cons of trading with your chosen broker and whether or not the platform suits your needs. If you’re interested in reading about some of the top crypto exchange platforms out there, you can hop on to our website.
Try out demo accounts
Many crypto exchanges offer traders a demo account feature that enables them to practice and experience crypto trading without losing capital. Similar to your Crypto Parrot trading account, you can trade with fake money on a real-time market, mimicking real-time trades, except that it’s without any risk (or profits!). The primary benefits of trading on a demo account are; you get an idea of how the trading platform would feel like, you gain insight into where you stand in terms of trading knowledge and skills, you get a clear picture of the risks that tag along with crypto trading, and you get to practice and polish your trading skills.
Make sure the platform focuses on learning
We believe that the key to succeeding in anything, especially trading, is ongoing learning. The more you invest in learning about the market, different tips and strategies, how to read the market directions, and other ways to reduce trading risk, the higher chances are that you’ll make successful trades. Make sure the trading platform you choose has learning tools and focuses on helping you grow with the help of those tools.
Look for a user-friendly platform
Anyone entering the crypto market is likely to spend a significant amount of time on the trading platform they sign up with. Hence, the crypto exchange you choose must be user-friendly and highly intuitive. This makes it easier to access trades, stay in touch with your investments, and make instant transactions whenever need be. The simpler and more user-friendly the platform is, the better your overall trading experience shall be.
Register with Crypto Parrot to experience crypto buying and selling today
Here at CryptoParrot, we aim to make crypto trading easier for traders. Our crypto exchange simulator is designed to look and act like an actual-life trading platform so people can practice and polish their trading skills until they’re ready to actually risk their capital.
Even if you’re simply looking forward to practicing the process of buying and selling crypto coins on a crypto exchange, we’ve got your back. Additionally, we offer a number of various tools to educate traders on crypto trading. Our platform has it all, from guides on choosing a top-notch crypto broker to broker reviews and trading tips.
Hop on now to register an account with us within moments. The process shouldn’t take more than a few moments; in fact, all you need to do is:
- Visit our website and click on sign-up
- Enter some basic details
- Verify that you’re who you say you are.
- Hop on to our trading platform and experience the whole crypto exchange scene without risking your capital.
When Bitcoin first entered the market, the available options to buy and sell the cryptocurrency were very limited. However, as time passes by and the crypto continues to grow globally, buying and selling Bitcoin is becoming easier and more convenient each passing day.
Depending on your priorities, there are several options available to sell your Bitcoin in Canada. For instance, you can sell your Bitcoin through a crypto exchange, or you could turn to a crypto broker for further ease. Also, the easiest way to cash out your Bitcoin is through a Bitcoin ATM because it’s pretty fast. You can get your Bitcoin converted to cash within minutes or in a few hours if it’s a busy day. If you’re hesitant about paying a conversion fee, then LocalBitcoins marketplace should be your go-to option.
To learn more about how buying and selling Bitcoin works and what crypto exchange platforms are ideal for beginners and experts alike, you can hop on to our website and sign up for an account on our crypto simulator today.
Compare the best Bitcoin trading platforms in Canada
Sell Bitcoin Canada FAQ
🔥Which Canadian banks sell Cryptocurrencies?
Nowadays, people have several options when it comes to buying and selling Bitcoin or other cryptocurrencies. For instance, Netcoins is a bank based in Vancouver that sells several cryptocurrencies, including Bitcoin, Ether, and Litecoin. The processes used to sell Bitcoin by the bank are E transfer, online bill payment, and wire. You can read more about selling crypto by visiting our website.
✋How can I buy Bitcoin through a peer-to-peer marketplace?
Buying and selling Bitcoin and other cryptocurrencies can be costly if the crypto broker or crypto exchange you choose has a high service fee or costs. Most brokers and exchange platforms charge you a fee when you buy and sell Bitcoin through them. However, to avoid the conversion fees, you can buy or sell the crypto through a peer-to-peer marketplace such as Paxful or LocalBitcoins. Hop on to our website and find out about other options for selling and buying Bitcoin.
✌Is Bitcoin a secure investment?
Several currencies have crashed in the past and a majority of them crashed due to inflation. When it comes to Bitcoin, inflation is not an issue. Why? Well, the supply of Bitcoin is limited to 21 Million only. Also, roughly every four years, the supply of Bitcoin is cut down by 50%. This event is known as Bitcoin halving, and each time it occurs, Bitcoin sees a spike in its value. While we can’t be 100% sure about Bitcoins’ ongoing success, the chances of the cryptocurrency crashing are quite low. Visit our website to find out more about Bitcoin and other cryptocurrencies.
✋What’s the lowest amount of Bitcoin I can buy?
When we think of Bitcoin, a huge sum of money comes to mind considering the current value of the cryptocurrency. However, you don’t need to be rich in order to invest in Bitcoin. Instead, you can even purchase 100$ worth of Bitcoin through a number of options including Coinbase. 100$ worth of Bitcoin might not be a profitable investment, but it’s certainly a great way to experience the buying and selling process of Bitcoin. You can make multiple small investments in order to build your portfolio too. Read more about buying Bitcoin on our website.